Posted on 10/10/2008 11:05:21 AM PDT by Glorious Liberty
What Americans want to hear is that everything will be alright, that a quick fix is at hand that will return us to prosperity and growth.
The problem is that there is no quick fix and, at best, we are in a serious recession.
What we need is a recovery plan that preserves our freedom and protects the only possible engine of prosperity, a free economy. We also need a recovery plan that is visibly fair.
It is beyond doubt that our economic troubles stem from government promoted expansion of bad debt. Congress required banks to make bad real estate loans. Government Sponsored Enterprises Fannie Mae and Freddie Mac, with the protection of politicians, accommodated and facilitated an enormous expansion of “subprime” lending. Banks around the world are failing as a result of holding mortgage backed securities and related toxic assets.
The road to recovery requires the recapitalization of banks. The bailout plan passed by Congress contemplates making huge gifts of taxpayer money to the banks. The Treasury Department wants to pay above market prices for assets – and hopes that some day the assets will be worth as much as they pay. Taxpayers deserve better. Fairness demands better.
Those banks which are bankrupt, whose liabilities exceed assets, should simply be permitted to fail.
Many other banks, while not bankrupt, have liquidity problems and, after suffering losses, are seriously undercapitalized. This keeps the banks from lending. To promote economic recovery, the government should offer to recapitalize healthy but undercapitalized banks directly. This means taking an ownership interest in exchange for an investment of cash.
The recapitalization alternative is visibly fair to taxpayers. We get something in return for our investment.
That said, recapitalization is not a cure all or a quick fix. All of the misguided lending created a “bubble” in real estate prices and a related “bubble” in the economy. These bubbles have obviously popped and, even with recapitalization, we have a recession.
It is tempting to ask the government to pour in resources to end the recession. But that would simply distort the economy and create other problems.
Chief among the other problems is runaway federal spending and runaway federal debt.
If the government pours in resources, if it insists on propping up the economy at any cost, it risks catastrophic failure, either through Zimbabwean inflation or through Argentinian default on government obligations.
We need to recognize that the government does not run the economy. In fact, any economy run by government is doomed to failure. If you doubt this simple truth, take a look at the economies of Cuba and Venezuela.
We need government to facilitate recovery through bank recapitalization. But, just as importantly, we need government restraint that will allow a free market economy to recover from government created distortions in the housing market and economy.
This economy cannot be fixed without removing the bonds from energy production. All the other mechanisms amount to spitting into the wind. Restricting energy was the root cause. Freeing up the flow of energy is the cure.
I certainly agree that removing restrictions on energy production will help the economy.
Protecting our liberty is a thing of the past. We lost that battle with the socialist bailout/nationalization of serveral company’s.
Thanks to Paulson and Bush they allowed socialists to takeover these company’s and now banks ans oil company’s are next in line.
Welcome to the new world order.
Let’s see if McCain has the onions to confront the “O”.
I want to hear one thing only:
That Barack Obama has been incarcerated for crimes against the nation.
You are too smart by half. The slugs in congress (Reid, Pelosi, Frank, Dodd and most especially Obama, et. al.) want the economy to crash.
That way they get use us to build their socialist utopia.
Get it?
I was flipping stations earlier and heard Ed Schultz on Air America suggest that the government provide car loans for people at 0-1% interest to stimulate the economy, since cars in his ND area aren’t selling because ‘people can’t afford them’. He tried to sell it using the spin of ‘this would only be for American cars, GE & Chevy’.
Yep, libs are soo smart, just ask them.
“Yep, libs are soo smart, just ask them.”
LOL - Well, to me it’s phrased: Republicans are so STUPID!
What Americans want to hear:
We want to hear about the Constitution. How we need to follow this document, and see the balance of power back between the three branches.
Limited government....
Executive Orders are a big example of the lack balance.
I keep hearing from the Dems / Obambi that removal of regulations by Bush, or resistance to regulations by Bush, caused the problem. Yet they never specify exactly which regulations were removed, loosened up, or resisted. In fact, it looks to me like Bush generally added to the regulations, or at least attempted to. Can’t the Dems be called on this?
“Yep, libs are soo smart, just ask them.”
LOL - Well, to me it’s phrased: Republicans are so STUPID!
All coins have two sides.
Would it be possible for thousands of people to get together and sue Barney Frank, Chris Dodd, Pelosi, etc?
Next is the elimination of the present tax code. Too Fing bad for the industries that feed off of the current tax code. Sorry! Corporate taxes...eliminated. Personal tax either 10% or 0%.Comsumption tax...possible.
Next prosecution for those law makers who gamed Fannie and Freddie and then mislead the markets and the public. ] Next term limits. never again will the country be ruled by powerful interests and their handmaidens in the House or Senate. Finally, Mayor Bloomberg, Your term is almost over, step aside. If want to help then volunteer and help the next mayor.New york doesn't need you as a three term( or longer ) mayor. You're a schmuck!!!
Never give up.
Many people see the Constitution as being the province of the Supreme Court rather than the people. Big mistake.
They can be called on this. You just called them on it.
Getting the public's attention, on the other hand, isn't easy. There are lots of voices competing to be heard. Many people are not even listening. Even big media doesn't reach that many folks.
I don’t know of any basis for a lawsuit which would have a chance in court.
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